China’s gold reserves will continue to rise

Chinese gold reserves will continue to rise in the sina finance opinion leader (WeChat public kopleader) columnist Liang Hong as the world’s largest gold mining country, China seems to have not hold enough gold. We expect that China’s gold reserves will continue to rise, but this will be a slow and long process. The central bank can buy gold through two markets at home and abroad. At present, Switzerland, Hongkong and South Africa are China’s major source of direct imports of gold. China gold reserves will continue to rise from a peak of $3 trillion and 990 billion in June 2014 to $3 trillion and 190 billion in August 2016 [1], China foreign exchange reserves decreased by 20.2%, while 31.3% decline because of exchange rate fluctuations negative valuation effects. Over the same period, China’s gold reserves increased significantly from 1054.1 tons to 1833.5 tons, an obvious contrast (Figure 1). Compared with other countries, China gold hold large measure? What are the policy implications of China’s gold reserves? Figure 1 although recent holdings, China is still low with gold. The central bank from June last year, the monthly data released gold reserves. Gold reserves jumped 57.3% in the current period, since then increased by a total of about 10.6%. In the past 14 months, the Chinese central bank holdings of 175.1 tons of gold, only next to Russia’s approximately $262.6, equivalent to the same period in the world’s total gold reserves of the total increase of 48.7% (chart 2 and 3). Figure 2, figure 3, however, China’s gold reserves are currently only in the world’s top sixth, equivalent to France (ranked No. fifth) and the United States (ranked first) of the 22.5% (Chart 4) (Figure 75.1%). From the ratio of gold reserves to GDP, China is only 16.9% of France and the United States of the United States, from the ratio of gold reserves to the population, China is only France and the United States, the United States is 3.5% of the number of 5.3% in the United States, the United States and the United States is only about $38.5%. Gold accounts for 2.4% of China’s reserve assets, well below France’s $66.5% and US $75.6% (Chart 5). As the world’s largest gold mining country, China does not seem to have enough gold. Figure 4 Figure 5 central bank holdings of gold may help: to achieve diversification of reserve asset investment. China’s reserves of 97.1% of foreign exchange reserves, accounting for about 29.4% of global foreign exchange reserves. As a result, the interest rate and exchange rate fluctuations in the reserve currency countries will have an impact on China’s national wealth, not to mention a large number of sovereign bonds. The diversification of Reserve Investment naturally calls for an increase in gold portfolio. Enhance the status of the RMB reserve currency. The international reserve currency status of the dollar is closely related to gold. Under the Bretton Woods system, the dollar and gold directly linked to the dollar replaced the pound as the main reserve currency has played a positive role. After the collapse of Bretton Woods system, the United States still have the world’s largest gold reserves, accounting for 24.7% of the world’s official holdings. Increase in gold reserves can further strengthen the market’s confidence in the renminbi, and the degree of internationalization of the RMB has been reversed相关的主题文章: